‘Weakest market’: Hobart’s typical home is thousands cheaper now than six months ago

While the larger cities push home prices to new heights, the average Hobart dwelling value is far lower now than it was six months ago, a report reveals.

Hobart is yet to turn the pricing corner that Sydney already has. Picture: Supplied

HOBART’S typical home is $33,000 cheaper now than six months ago.

PropTrack’s July Home Price Index showed that greater Hobart’s median dwelling value — houses and units combined — was $680,000.

In February, it was $713,000.

The report revealed a 0.21 per cent monthly increase following over a dozen monthly decreases in the southernmost capital city.

At $680,000, Hobart’s median remains more expensive than Darwin, Perth and Adelaide.

Over the past 12 months, Hobart’s median dwelling value has decreased 4.89 per cent.

PropTrack senior economist Eleanor Creagh said Hobart is currently the weakest performing city market.

“However, this comes after several years of outperformance, as well as strong growth during the pandemic,” Ms Creagh said.

“Home prices in Hobart are still up 38.3 per cent since March 2020.”

MORE: Country pub sale is a deal four decades in the making

Forecast: Where rents are set to increase the most by next year

Eleanor Creagh, PropTrack senior economist.

In regional Tasmania, dwelling values lifted by 0.08 per cent monthly but were down 0.45 per cent annually.

The median is $503,000, which is 53 per cent higher than at Covid’s onset. That was the equal best performance, with Queensland, of the regional areas.

Real Estate Institute of Tasmania president Michael Walsh said this year’s shift in property pricing has its upsides.

“Our market has levelled out to a far more balanced playing field,” he said.

“We have not seen that for many years.”

EIS Property managing director David Gunning said he had found that the market had noticeably “picked up a bit” in July.

“With possibly one more rate rise, buyers are feeling a lot more confident than they were a few months ago,” Mr Gunning said.

The report showed Hobart’s July median house price was up 0.25 per cent for the month and down 5.49 per cent annually. The median is $726,000.

In the units market, the median is $563,000 with 0.05 per cent monthly growth and a 2 per cent reduction annually.

MORE: Should you get a smaller mortgage?

King Charles made $50m from rent rises

EIS Property managing director David Gunning.

REIT president Michael Walsh.

In the rest of Tasmania, the median house value was up 0.09 per cent monthly and down 0.67 annually with a $528,000 median value.

Units in regional Tassie were up 2.02 per cent annually and 0.03 per cent monthly, with a $423,000 median.

Across the regions, the West and North West remains Tasmania’s top performer with 2.31 per cent annual dwelling growth.

It remains the state’s most affordable SA4 area with a $453,000 median dwelling price. Its median is $74,000 lower than Launceston and North East, $147,000 lower than South East, and $227,000 less than Hobart.

Meanwhile, the national pricing rebound has continued, with home values now higher than they were at this time last year.

Petrusma Property's $1.625m sale of No.9B Talune St, Lindisfarne was among the best of July, per realestate.com.au.

JULY HOME PRICE INDEX

City, monthly growth, annual growth, change since March 2020

Sydney 0.28% 3.16% 28.4%

Melbourne 0.01% -1.3% 15.6%

Brisbane 0.37% 1.98% 47.8%

Adelaide 0.62% 5.95% 50.4%

Perth 0.36% 6.56% 35.9%

Hobart 0.21% -4.89% 38.3%

Darwin -0.08% -1.22% 25.3%

Canberra -0.02% -2.98% 35%

Capital cities 0.23% 1.88% 28.1%

Source: PropTrack